We’ve already seen as moving to Zurich may involve various practical steps.
But what about the social security norms for expats?
Let’s check them!
Swiss social security: the Three Pillars
The Swiss social security contributions are compulsory for each resident, and they’re based on a three-pillar system:
1. First Pillar
It consists of a state pension plan which includes different insurance schemes, such as the Old Age and Survivors Insurance(OASI), Disability Insurance, and Unemployment Insurance.
Basically, some deductions will be taken from your employer at source:
· Old-Age and Survivors’ Insurance, Disability, and Income Loss Insurance: 5.05% of your income;
· Unemployment Insurance: 1% of your salary;
· Occupational Pension Provision: roughly 7.5% of your income;
· Non-occupational Accident Insurance: between 0.7% and 3.4% of your salary.
2. Second Pillar
The Occupational Benefit Provision (LPP), which is jointly financed by employer and employee’s contributions, is a supplementary insurance scheme. It assures a supplement that’d afford you to keep the living standard you enjoyed before the old-age.
Just to give you a quick idea: when combined with the first pillar’s benefits, you could expect to earn about 60% of your final salary after retirement!
3. Third Pillar
It’s a private, individual optionavailable through two different private pension plans:
· 3a Pillar: a restricted private pension fund from which you cannot take your savings out any time you like;
· 3b Pillar: a free/unrestricted pension plan with no limit to the amount you can pay, but with fewer tax advantages than the 3a pillar.
So, if you’d like to start a private pension plan once in Zurich, talk with a local bank or insurance provider!
Other 3 social security advice
1. Open a bank account
Zurich has an efficient banking system, so we’d suggest you to check some major Swiss banks to set up a bank account that would simplify your staying in the city!
Here they are:
· UBS
2. Pay attention at the Health Insurance
Anyone moving to Zurich for staying must take out the Swiss health insurance, as we’ve already seen into detail.
For foreign citizens there may be some exceptions, but never forget to look for the health insurer that may better fit your situation!
3. Be aware of the Car Insurance
Getting a car? In this case, you should know that – to obtain the Swiss license plates – you’ll need to provide confirmation of the mandatory liability insurance, and the main expenses for your full car insurance may be:
· A deductible of around 500 CHF;
· The optional Partial Kasko Policy, which covers several damages with a minimum deductible amount of CHF 300;
· The optional Kasko Collision Policy, with a minimum amount of 1000 CHF.
Just check the Comparis online portal to find the car insurance offer!
